Maggi on the boil: instant noodles give Nestle a slow burn across India

Nestle India faced the heat from all corners on Wednesday with its two-minute noodle brand ‘Maggi’ banned for 15 days in Delhi and the Centre moving the National Consumer Disputes Redressal Commission.

“A lot of Maggi samples have been found to be bad and we have directed the NCDRC, using Section 12 (1) d (of the Consumer Protection Act, 1986) to investigate,” Ram Vilas Paswan, Union Food and Consumer Affairs Minister, told newspersons.

He said with a possibility of reports from the Food Safety and Standards Authority of India (FSSAI) getting delayed, his Ministry had taken

suo motu action in the interest of consumers. “What action the NCDRC will take I cannot say at the moment … if the FSSAI reports are positive, then it’s a serious issue,” he added.

Capital ban On Wednesday, the Delhi Government, which found 10 of the 13 samples “unsafe”, banned Maggi for 15 days. Satyender Jain, the State Health Minister, said the company has been directed to withdraw existing stocks. “Lab testing of fresh stocks will be conducted thereafter and a decision taken accordingly… A case will be filed against Nestle India as per provisions of the Food Adulteration Act, and there will be no compromise on issues relating to health safety,” he said.

Retail giant Future Group also decided to pull Maggi off its shelves, as did consumer cooperative Kendriya Bhandar. The Army has reportedly issued advisories asking personnel not to consume the product. More States, including Punjab, Telangana and Tamil Nadu, have begun independent sample testing.

“We have taken Maggi noodles off shelves from all our stores,” said a Future Group spokesperson.

State-run outlets in Kerala have been ordered to withdraw the noodles, while Karnataka and Haryana have directed State agencies to randomly lift the product for testing. Gujarat and West Bengal had taken steps to test the noodles earlier.

Retailer Savemax is also keeping Maggi off the shelves. “We are removing Maggi packets from our stores in Delhi, UP and Haryana. In Punjab, we are opening two stores and have decided not to put Maggi on the shelves,” said Aman Mittal, COO, Savemax.

The cumulative impact of all these actions will hit Nestle India hard. The company commands an 80 per cent market share, by value, in the instant noodles category. The Nestle India stock sank 9.3 per cent to close at ₹6,170 on the BSE, on Wednesday.